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March 13, 2009

The 80/20 rule and how to implement it in my life. Part 1

So, if this 80% output rule applies to my life, I have to assume that I should be putting my time into 4 projects, with specific time periods per day for those projects, to maximise my abilities right? How do I get to 4 projects?

4 x 20% = 80% of my total capacity to work. Each 20% will mean each project is running at 80% efficiency (profitability).

That does, however, mean all 4 projects should be profitable at below the 80% effectiveness area. If a project is only effective at 90% capacity then it’s not worth pursuing, right?

The idea then for me, is to find 4 projects which operate as follows:

1. At 50% of full capacity, the project is already significantly profitable.
2. At 80% capacity, there is enough profit to outsource the other 20% properly, so that the money generated in that 20% far outweighs the effort and cost of outsourcing. What’s the point of making the same money after outsourcing? That just equates to headaches and time spent for nothing.
3. Each project can operate on a few hours work a week, ideally being maintenance orientated, and not highly admin orientated.
4. Each project operates as an autonomous unit from the other, and isn’t dependent on any other unit for profit. This means that if I want to shut 1 project down, it doesn’t affect the others and my overall lifestyle isn’t influenced.
5. Each project employs the same set of skills that I can duplicate in a set way for a different result in 4 different potential industries. That way I limit time to learn new things and can maximise outputs through a single set of variable skills.

The left over 20% is my personal time for myself to chill out and spend time with my loved ones and be completely non work orientated.

Now, I reckon people are working full capacity at about 20 hours a week. Other than that, its admin, faffing and pretending to be really busy.

80% of that is 16 hours, and divided into 4 projects, that would mean 4 hours per week on each project, or 1 hour a day, Monday to Thursday. That’s 1 intense hour, excluding administration, paperwork and research, etc. 1 hour of actively promoting that project and making sure it’s profitable.

Could you do your job in 1 hour a day if you were properly prepared for that hour?

How much reality is there to that? What does it mean to me, personally? More of that in part 2…

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